Citizens Bank International Introduces Instant Digital Loans Against Fixed Deposits
30th October 2025, Kathmandu
Citizens Bank International Limited has unveiled a significant new offering in the Nepali banking sector: an instant digital loan facility against fixed deposits (FD). This move is a clear testament to the bank’s accelerating digital transformation strategy, aimed at providing customers with immediate access to liquidity while ensuring their savings remain intact.
Digital Loans Against Fixed Deposits
By eliminating the traditional requirements of branch visits and lengthy paperwork, Citizens Bank is setting a new, higher benchmark for customer-centric and technologically advanced financial services in Nepal. This innovative product positions the bank at the forefront of the country’s rapidly evolving digital financial ecosystem, emphasizing speed, security, and supreme convenience.
The Digital Leap in Secured Lending
The introduction of the digital FD loan by Citizens Bank International addresses a fundamental customer need: quick cash access without sacrificing long-term savings. Traditionally, obtaining a loan against a fixed deposit, while a secure borrowing method, involved a manual process that could take days. The bank has successfully digitized this entire workflow, enabling customers to manage their finances entirely through the Citizens Mobile Banking app or internet banking portal.
This fully automated and paperless process means a customer can apply for, receive real-time approval for, and get the loan amount disbursed directly into their account in just minutes. The fixed deposit itself serves as the collateral, a secure mechanism that mitigates risk for the bank and, consequently, allows for lower interest rates compared to unsecured personal loans. This solution is perfect for handling unexpected expenses or capitalising on time-sensitive investment opportunities without the financial penalty of prematurely breaking the FD and losing accrued interest.
Key Advantages of the Instant Digital FD Loan
The new service offers several powerful benefits that make it an exceptionally attractive financial tool for a wide range of customers, including both retail and corporate clients:
Instant Access and Disbursement: The most compelling feature is the ability to access funds within minutes, directly tackling the urgency often associated with borrowing.
Paperless and Automated Process: By eliminating the need for physical documentation and branch visits, the service delivers unparalleled convenience and time savings.
Secure Borrowing Mechanism: The loan is secured by the customer’s existing fixed deposit, which means borrowing is inherently low-risk, a factor that is often reflected in more favorable loan terms.
Savings Preservation: Customers continue to earn interest on their fixed deposit even as it is used as collateral, ensuring their long-term savings goals are not disrupted.
Flexible Repayment: The service offers flexible repayment options, allowing customers to tailor the terms to their specific financial circumstances.
This blending of liquidity and savings stability is a critical financial innovation, particularly in a market where consumers are increasingly looking for sophisticated yet simple digital tools to manage their wealth.
Advancing Nepal’s Digital Financial Ecosystem
Citizens Bank International’s move is more than just a new product launch; it is a strategic contribution to the broader goal of advancing digital banking in Nepal. The initiative aligns perfectly with the national shift toward a faster, more transparent, and secure digital financial ecosystem, supported by the regulatory environment set by Nepal Rastra Bank (NRB). The Nepali banking industry has witnessed substantial growth in digital adoption, with millions of users engaging with mobile and internet banking services. However, challenges like low digital literacy in rural areas and the need for more diverse digital solutions persist.
By offering a secured, fully digital lending product, Citizens Bank is not only catering to the technically savvy urban populace but is also demonstrating the robustness and ease-of-use of digital platforms, which is crucial for increasing widespread adoption across the country. This innovation, following the path of other early adopters of digital Loan Against FD in Nepal’s commercial banks, helps to build customer trust and familiarity with end-to-end digital financial services, strengthening the foundation for future fintech advancements. The competitive nature of such digital offerings is a powerful driver for innovation across the sector, pushing all financial institutions towards greater efficiency and customer focus.
Citizens Bank International: A Leader in Digital Banking
Since its establishment in 2007, Citizens Bank International has consistently championed a customer-first approach and an embrace of innovative financial products. The launch of the digital loan against fixed deposits is the latest in a series of strategic moves, which include mobile banking, QR payments, and digital deposits, that showcase its ambition to become a fully digital, future-ready financial institution.
The bank operates with an extensive network of physical branches and, increasingly, robust digital channels, serving a diverse clientele across the nation. This latest service strengthens its reputation as an innovator in the Nepali banking industry and sets a significant new benchmark for the integration of technology and customer convenience in the financial sector. The ability to offer instant, secured credit access is a definitive step toward making banking simpler, smarter, and more empowering for all customers.
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